UNIVERSITY BANCORP, INC. ANNOUNCES RESULTS FOR 2011

For Immediate Release

UNIVERSITY BANCORP, INC. ANNOUNCES RESULTS FOR 2011

Ann Arbor, Michigan, May 9, 2012, — University Bancorp, Inc. (OTCQB: UNIB) (Pink Sheets: UNIB) announced today that it had an audited net loss of $932,074 in 2011 versus net income of $169,359 in 2010. After taking into account preferred stock dividends and net income attributable to the minority interests held by outside shareholders in University Bank’s subsidiaries, net income attributable to the common stockholders of University Bancorp, Inc. was a net loss of $380,384 ($0.089 per share) in 2011 versus a net loss of $318,575 ($0.073 per share) in 2010.

President & CEO Stephen Lange Ranzini noted, “The bottom-line 2011 results were disappointing after the $2.9 million in unusual expenses we incurred. Increased profitability at both Midwest Loan Services and University Islamic Financial were insufficient to offset these lost profits. Ranzini noted, “Our rapidly growing subsidiaries generated 86.2% of our bank’s $21,280,296 revenues in 2011.”

For 2012 the Company is projecting $5.7 million of pre-tax income, and for the first three months of the year, our pre-tax profits were $668,931 ahead of the budget projection. For the first three months of 2012 all of the bank’s subsidiaries are performing ahead of the budgeted net income, and the bank’s Tier 1 Capital had risen to 9.66%.

Unusual expenses during the year decreased the final result by $2,931,808:

Valuation reserves from the write-down of mortgage servicing rights of $1,381,808 as the value of mortgage servicing rights plunged during the year due to both the impact of the record low long term mortgage rates available to customers and the new HARP2 refinancing program initiative;

University Lending Group’s wholesale lending group shut down causing a loss of $1,050,000, after its business model was severely challenged and its volume dropped 75% when many of its customers ceased doing business following the imposition of costly new regulatory mandates. From inception in May 2008 through closure in July 2011, the wholesale lending business had earned approx. $715,000 on a total investment of $1,400,000 on total loans closed of $927.4 million. The bank earned substantial additional profits over the years from net interest income generated from financing the loans.

In response to the closure of its wholesale lending business unit, University Lending Group established a network of 12 new retail lending offices in SE Michigan, Indiana and the Florida Panhandle and start-up costs of approx. $500,000 were incurred in 2011. In the first quarter of 2012, these offices had a pre-tax profit of $548,192 on total mortgage originations of $74.2 million, of which Realtor® referred purchase loans comprised 61%.

As of the close of business December 31, 2011, the Company issued 366,720 shares of common stock (in addition to the $250,000 paid earlier) to acquire 37.4925% of its subsidiary, University Lending Group, LLC, increasing its ownership interest to 87.5025%.

Highlights for the year include:

Mortgages sub-serviced by Midwest Loan Services grew 8.4% to 70,889 from 65,367, the total of mortgages subserviced grew to $10.03 billion and revenue at Midwest Loan Services rose 0.7% to $8,620,516 from $8,558,864;

Deposit mortgage escrow deposits at University Bank grew 9.2% to $112,866,935 from $103,390,466;

Our Islamic division booked its second annual operating profit, $296,938 up 49.0% from $199,280 in 2010, and the amount of loans serviced for FHLMC rose 64.9% and revenues grew 55.2% to $2,856,983 from $1,841,422;

University Bank and its subsidiaries continue to actively lend in our local communities despite the ongoing business recession, with $313,815,218 in residential mortgage originations in 2011.

Key metrics for the year ended December 31, 2011 were:

Total Revenue increased to $21.3 million from $20.4 million, up 4.1%;

Total Assets increased to $120.4 million from $117.3 million, up 2.7%;

Net Interest and financing income increased to $3.94 million, up 0.4%;

Loans and financings held for portfolio decreased 2.1% to $57.7 million;

Ann Arbor-based University Bancorp owns 100% of University Bank which, together with its subsidiaries, holds and manages a total of over $10.8 billion in loans and assets. University Bank is an FDIC-insured, locally owned and managed community bank, and meets the financial needs of its community through its creative and innovative services. Founded in 1890, University Bank® is proud to have been selected as the “Community Bankers of the Year” by American Banker magazine and as the recipient of the American Bankers Association’s Community Bank Award.

Shareholders and investors are encouraged to refer to the financial information including the audited financial statements, available on our investor relations web page at: http://www.university-bank.com/bancorp/.

CAUTIONARY STATEMENT: This press release contains certain forward-looking statements that involve risks and uncertainties. Forward-looking statements include, but are not limited to, statements concerning future growth in assets and net income, the sustainability of past results, and other expectations and/or goals. Such statements are subject to certain risks and uncertainties which could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including, but not limited to, economic, competitive, governmental and technological factors affecting our operations, markets, products, services, interest rates and fees for services. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.